Australian Stimulus Package: Federal Government has outlined new measures in a stimulus package worth nearly $18 billion.

1. Australian Stimulus
Package: What You
Should Know

2. The Australian Government and banking institutions have
united to assist small businesses weather economic uncertainty.
This page is a list of the concessions and help available to
businesses.
Federal Government
On 12 March, the Government has announced a $17.6 billion
economic plan to deal with the significant challenges posed by
the spread of the coronavirus.
This initial package has been expanded with a further
announcement on 22 March that brings the consolidated
assistance provided by the Federal Government to $189 Billion.

3. • Supporting business investment
• Providing cash flow assistance to help small and medium
sized business to stay in business and keep their employees in
jobs
• Targeted support for the most severely affected sectors,
regions and communities;
• Household stimulus payments that will benefit the wider
economy
The Government plans to introduce the package of Bills for the
relief measures into Parliament on 23 March. What has been
announced is set out below.

4. REAL, CASH MONEY FOR SMALL BUSINESS OWNERS
i) 100% Cashback on PAYG Withholding, up to $100,000
Business entities with annual aggregated turnover of less than
$50 million that withhold tax to the ATO on their employees’
salary and wages will receive a payment equal to 100% of the
amount withheld, up to a maximum payment of $100,000.
Eligible businesses that pay salary and wages will receive
a minimum payment of $20,000, even if they are not required
to withhold tax.

5. The ATO will deliver the payment as a credit to the business
upon lodgment of their activity statements. Where this places
the business in a refund position, the ATO will deliver the refund
within 14 days. The payment will be a tax-free refund or credit.
The payment will be tax free and delivered by the ATO as a
credit in your Business Activity Statement (BAS) from 28 April
2020. Quarterly BAS lodgers will get the credit in the June-20
quarter BAS. Monthly IAS lodgers will get a credit of 100% from
the March-20 IAS up to the June-20 IAS. Any existing debt with
the ATO this will be offset against your existing liability.
The Government has also announced that there will be an
additional payment in the July – October 2020 period equal to
the total of all the payments made in the period prior to June –
limited to the maximum threshold of $100,000.

6. The benefit is for limited time only and applies to the PAYG
Withholding on wages between 1 January 2020 and 30 June
2020.
If for example you have spent more than $100,000 in PAYGW for
the 6 month period between 1 January and 30 June 2020, you
should receive $100,000 from the Government. If you have
spent $30,000 in PAYGW for the same period, you will get
$30,000. These credit will be applied by the ATO as from 28
April.
Any employer that has received the maximum $100k payment
will not be entitled to a further payment in the July – October
quarter. The employer that, for example, received a $30,000
refund will receive a further $30,000 refund in the July –
October quarter.

7. How to apply?
This credit will automatically be processed upon lodgement for
your BAS and IAS by iKeep.
ii) 50% subsidy on apprentice wages, up to $21,000
Eligible employers can apply for a wage subsidy of 50% of
apprentice or trainee wages for up to 9 months from 1 January
2020 to 30 September 2020 (up to a maximum of $21,000 per
eligible apprentice or trainee).
If a small business is not able to retain an apprentice, the
subsidy will be available to a new employer that employs that
apprentice.
How to apply?
Employers can register for the subsidy from early April 2020
with final claims for payment due by 31 December 2020.

8. iii) Instant asset write-off increase
For new or second-hand assets first used or installed ready for
use from 12 March until 30 June 2020, the instant asset write-
off threshold will be increased from $30,000 to $150,000 for
businesses with aggregated annual turnover of less than $500
million (up from the current $50 million threshold). The
threshold applies on a per asset basis, so eligible businesses can
immediately write-off multiple assets.
The threshold will revert to $1,000 for small businesses (for
businesses with a turnover less than $10 million) from 1 July
2020.

9. iv) 50% investment incentive
The Government is introducing a time limited 15 month
investment incentive (to 30 June 2021). Businesses with
aggregated annual turnover of less than $500 million per
annum will be entitled to accelerated depreciation deductions.
Eligible businesses will be able to deduct 50% of the cost of an
eligible asset upon installation. Assets must be acquired after 12
March 2020 and first used or installed by 30 June 2021.
There is no asset value threshold for this 50% investment
incentive and the existing depreciation rules will continue to
apply to the remaining balance of the asset’s cost over its
effective life. Therefore, an eligible asset will generate the
immediate deduction of 50%, plus in the same year will
generate a Division 40 depreciation deduction calculated in
accordance with the normal depreciation rules.

10. How to apply?
This credit will be processed on the preparation and lodgement
of your 2020 income tax return.
Tax Payment Deferrals
The ATO has announced a series of payment deferral
concessions for businesses directly impacted by COVD-19.
These concessions are:
Deferring by up to 4 months the payment date of amounts due
through the business activity statement (including PAYG
instalments), income tax assessments, fringe benefits tax
assessments and excise duty.

11. Allowing businesses on a quarterly reporting cycle to opt into
monthly GST reporting in order to get faster access to GST
refunds they may be entitled to.
Allowing businesses to vary Pay As You Go (PAYG) instalment
amounts to zero for the March 2020 quarter. Businesses that
vary their PAYG instalment to zero can also claim a refund for
any instalments made for the September 2019 and December
2019 quarters.
Remitting any interest and penalties, incurred on or after 23
January 2020, that have been applied to tax liabilities; and
Allowing affected businesses to enter into low-interest payment
plans for their existing and ongoing tax liabilities

12. How to apply?
The ATO assistance is not automatic, contact your iKeep team,
who will approach the ATO to request assistance, and if eligible,
the ATO will ‘tailor’ the assistance package for you.
Non-iKeep clients can call the ATO’s Emergency Support Infoline
on 1800 806 218 to discuss relief options based on their needs
and circumstances.
Temporary relief for financially distressed businesses
The Government has also announced a series of measures that
are aimed at lessening the threat of legal action against
businesses that could cause them to become insolvent and
force them into liquidation.

13. These measures include:
An increase to the threshold at which creditors can issue a
statutory demand on a company and initiate bankrupt
proceedings against an individual. The new threshold limit has
not been released yet.
The time companies and individuals have to respond to
statutory demands they receive will be increased. Now 6
months, previously 21 days.
Directors are temporarily relieved from any personal liability for
trading while insolvent.
New measures that introduce some flexibility to the
Corporations Act 2001 targeted at providing relief from the
provisions of the Act to deal with the unforeseen events that
arise as a result of the Coronavirus health crisis have been
announced. No further detail is available as to what these
amendments are.

14. The Government also announced that the ATO will tailor
solutions for owners and directors that are currently struggling
due to the Coronavirus. The assistance offered by the ATO to
business will including a temporary reduction of payments or
deferrals of tax liabilities, or withholding enforcement of
liabilities by not proceeding with actions such as Director
Penalty Notices and the wind-up of a business.
How to apply?
The ATO assistance is not automatic, contact your Kelly Partners
client director, who will approach the ATO to request assistance,
and if eligible, the ATO will ‘tailor’ the assistance package for
you.
Non- iKeep clients can call the ATO’s Emergency Support Infoline
on 1800 806 218 to discuss relief options based on their needs
and circumstances.

15. Supporting the flow of credit
The Government, the Reserve Bank of Australia and the
Australian Prudential Regulatory Authority have taken
coordinated action to ensure the flow of credit in the Australian
economy. These measures include:
Support for immediate cash flow needs for SMEs: Under the
Coronavirus SME Guarantee Scheme, the Government will
provide a guarantee of 50% to SME lenders to support new
short-term unsecured loans to SMEs. The Scheme will
guarantee up to $40 billion of new lending.
Quick and efficient access to credit for small business: The
Government is cutting red tape by providing a temporary
exemption from responsible lending obligations for lenders
providing credit to existing small business customers.

16. Reserve Bank of Australia — Supporting the flow and reducing
the cost of credit
The Reserve Bank of Australia (RBA) announced a package on 19
March 2020 that will put downward pressure on borrowing
costs for households and businesses.
The RBA announced a term funding facility for the banking
system. Banks will have access to at least $90 billion in funding
at a fixed interest rate of 0.25 per cent. This will reinforce the
benefits of a lower cash rate by reducing funding costs for
banks, which in turn will help reduce interest rates for
borrowers. To encourage lending to businesses, the facility
offers additional low-cost funding to banks if they expand their
business lending, with particular incentives applying to new
loans to SMEs.

17. In addition, the RBA announced a further easing in
monetary policy by reducing the cash rate to 0.25 per cent.
It is also extending and complementing the interest rate cut
by taking active steps to target a 0.25 per cent yield on 3-
year Australian Government Securities.
Support for Non-ADI and smaller ADI lenders in the
securitisation market.
The Government is providing the Australian Office of
Financial Management (AOFM) with $15 billion to invest in
structured finance markets used by smaller lenders,
including non-Authorised Deposit-Taking Institutions (non-
ADI) and smaller Authorised Deposit-Taking Institutions
(ADI). This support will be provided by making direct
investments in primary market securitisations by these
lenders and in warehouse facilities.

18. Australian Prudential Regulatory Authority — Ensuring banks
are well placed to lend
The Australian Prudential Regulatory Authority has announced
temporary changes to its expectations regarding bank capital
ratios. The changes will support banks’ lending to customers,
particularly if they wish to take advantage of the new facility
being offered by the RBA.
2) State Government NSW
Payroll Tax Concessions
For businesses whose total grouped Australian wages for the
2019/20 financial year is less than $10M:

19. will have their annual tax liability reduced by 25% when they
lodge their annual reconciliation, which is due on 28 July.
For those taxpayers who lodge and pay monthly, no payment is
required for the months of March, April or May 2020; ie. the
payroll tax is completely waived
When lodging your annual reconciliation, you will still need to
provide wage details paid in these months and will receive the
benefit of a 25% reduction in the amount of tax you would have
had to pay for 2019-20.
How to apply?
This will be automatically applied for the payroll tax returns
covering above mentioned periods.

20. will have their annual tax liability reduced by 25% when they
lodge their annual reconciliation, which is due on 28 July.
For those taxpayers who lodge and pay monthly, no payment is
required for the months of March, April or May 2020; ie. the
payroll tax is completely waived
When lodging your annual reconciliation, you will still need to
provide wage details paid in these months and will receive the
benefit of a 25% reduction in the amount of tax you would have
had to pay for 2019-20.
How to apply?
This will be automatically applied for the payroll tax returns
covering above mentioned periods.

21. Other Concessions
The NSW government has also announced the following
concessions:
The raising of the NSW payroll tax threshold to $1 million as
from July 2020; and
a waiver of a range of fees and charges for small businesses
including bars, cafes, restaurants and tradies.
VIC
The Victorian government has announced a $1.7 billion
“economic survival and jobs” package that includes the
following assistance to SME businesses:

22. SME businesses with payrolls of less than $3 million will be
refunded their payroll tax. Payments to eligible businesses will
commence from 23 March.
SME businesses with payrolls of less than $3 million will also be
able to defer any payroll tax for the first three months of the
2020/21 financial year until 1 January 2021.
Commercial tenants in government buildings can apply for rent
relief.
A Business Support Fund will be established to support the
hardest hit sectors, including hospitality, tourism,
accommodation, arts and entertainment, and retail.

23. How to apply?
Vic businesses can now access information on the support
services being provided on dealing with COVID-19, including
how to access financial support available through the national
stimulus package, by calling the Business Victoria hotline on 13
22 15. A coronavirus business support page has also been
created. Find it here.
QLD
Interest Free State Government Loans
The QLD Government will offer $500m in loans to eligible
businesses to retain employees and maintain operations.
Details are:
Loans up to $250,000

24. First 12 months interest free
Currently taking expressions of interest before rolling out the
concessional loans
How to apply?
Expressions of interest application is here
Payroll Tax Concessions
Deferred payroll tax returns until 31 July 2020
Payroll Tax Concession Summary
How to apply?
Complete the online payroll tax deferral application form

25. 3) Banks and Lending Institutions
Specific COVID-19 concessions have been announced by the
following banks:
i) Commonwealth Bank (CBA)
Deferring repayments on a variety of business loan and
overdraft products, for 6-months.
Reducing commercial interest rates by 0.25
Waiving merchant terminal fees for impacted customers with
CBA payment terminals, for 90 days.
Waiving early redraw fees on business term deposit accounts
(including Farm Management Deposit accounts).
Waiving establishment fees and excess interest on Temporary
Excess products.

26. Deferring repayments on vehicle and equipment finance loans,
and providing tailored restructuring options that meet
individual customer needs.
How to apply?
Speak with your CBA Bank Manager.
ii) ANZ
Suspending interest repayments
Deferral of business loan repayments for up to 6 months,
assessed on a case-by-case basis
Providing early access to term deposits without incurring break
fees
Providing access to additional credit subject to approval

27. How to apply?
Contact ANZ or your relationship manager.
iii) NAB
Deferral of business loan repayments for up to 6 months,
assessed on a case-by-case basis
Extension of a business loan term by a period of up to three
months, where individual circumstances warrant
Support to restructure existing business loans, including
equipment finance
Business credit card deferred repayments.
How to apply?
Contact NAB or your relationship manager

28. iv) Westpac
Continuing it’s hardship assistance program
Deferral of business loan repayments for up to 6 months,
assessed on a case-by-case basis
How to apply?
Contact Westpac or your relationship manager

29. v) Bendigo
Home Loan and Business Loan customers can apply for relief on
loans for up to three months
Waiver of fees for the restructuring or consolidation of loans
Credit card customers can apply for an emergency credit card
limit increase
Discounted interest rates on new personal loans taken out by
existing Bendigo Bank customers
Waiver of interest rate reduction for early withdrawals on term
deposits prior to maturity
Deferral of payments and extensions for Equipment Finance on
a case by case basis

30. How to apply?
Contact Bendigo Bank or your relationship manager
https://www.ikeep.com.au/